Location: Dyer County, TN | Metro: Dyer County, TN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $76,921 | 1.3% | A |
| 3BR | $1,300 | $192,659 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 38024 in Dyersburg, TN, reveals a specific financial landscape that investors should consider. The Fair Market Rent (FMR) for a two-bedroom property in the metro area for fiscal year 2026 is set at $930 per month, while the Zillow Observed Rental Index (ZORI) indicates a market rent of $832 per month. Using these figures against the median home value of $166,544, we can derive the implied gross yields.
First, let's calculate the gross yield using the FMR. At $930 per month, the annual rental income would be $11,160. Dividing this by the median home value gives an implied gross yield of approximately 6.71%. This calculation assumes the property is rented out at the maximum allowable rate under the Section 8 program.
Next, using the ZORI market rent figure of $832 per month, the annual rental income drops to $9,984. When divided by the median home value, this results in an implied gross yield of about 6.00%. This scenario reflects the typical market conditions outside of the Section 8 program.
Given the 40.9% renter density and the 27-day Days on Market (DOM), it is more realistic to consider the ZORI market rent figure for most investment scenarios. A higher DOM suggests that properties take longer to rent, indicating a less robust demand in the rental market. Additionally, the lower renter density means fewer potential tenants, making the FMR scenario less likely to materialize consistently over time.
In conclusion, while the FMR provides a higher gross yield of 6.71%, the market rent scenario of 6.00% is more reflective of the actual rental environment in Dyersburg, TN. Investors should factor in the local rental dynamics and the likelihood of securing long-term Section 8 tenants when evaluating the potential returns of properties in ZIP code 38024.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.